Forex - Investors unwinding risks on lower US financial stocks
The Dollar dropped against the Yen on Monday, pressured by sharp losses in US equities as remaining credit worries forced investors to reduce risky trades. Dollar gained against the Euro and Sterling on views that declining growth in Euro-zone and United Kingdom could force their Central Banks to cut benchmark interest rates.
Yesterday better-than-expected US existing home sales were little support to the Dollar as even a recovery in Housing market is seen as critical to easing some of the concern on the US economy.
On Tuesday, currency investors will look at German Ifo data, US housing, US Consumer Confidence and minutes of last FOMC meeting for clues where the economy and interest rates are headed.